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Stanford University’s Travel Program FYI Forum 7.16.02. AGENDA Current Travel Program Overview Travel Industry Update Stanford Travel Program Challenges Suggestions for Direction on Next Steps (Presentation Made Previously to UMG on 5.23.02, CFO on 6.5.02, and SLAC Senior Mgmt on 6.21.02).
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Current Travel Program Overview
Travel Industry Update
Stanford Travel Program Challenges
Suggestions for Direction on Next Steps
(Presentation Made Previously to UMG on 5.23.02, CFO on 6.5.02, and SLAC Senior Mgmt on 6.21.02)
“All told, the U.S. airline industry is expected to post collective
losses topping $2 billion for the first three months of this year,
the second-worst quarter ever, exceeded only by last year’s
fourth quarter.” Wall Street Journal, April 17, 2002
In 2001 Stanford travelers using Navigant,
generated $252,164 in airline commissions
used to offset travel program costs with agency
“Online ticket sales…will jump 31% this year, despite an overall
decline in bookings since late 2001” Wall Street Journal, April 17, 2002
Airfare costs in excess of the lowest available commercial discount airfare,
…or customary standard (coach or equivalent) airfare, are unallowable….
Where an institution can reasonably demonstrate to the sponsoring agency
either the nonavailability of discount airfare or Federal contract airfare for
individual trips or, on an overall basis, that it is the institution’s practice to
make routine use of such airfare, specific determinations of nonavailability
will generally not be questioned by the Federal Government, unless a pattern
of avoidance is detected.
OMB Circular NO. A-21 (revised 8/8/00)
Sec J, 48.c (travel costs, commercial air travel)
Topaz International, an airfare audit firm that audits agencies
to assure it’s corporate customers are offered the lowest airfare,
recently conducted a study between corporate travel programs
vs. fares for the same flight on Internet sites.
Between 15 and 20 companies, all Topaz customers, were subjects.
All had at least one negotiated airline agreement. Topaz compared
reservations with agency to websites. Sites searched included
Travelocity, Expedia, Orbitz, Cheap Tickets, and Airline Websites.
Topaz determined that it found lower fares on the internet sites 7%
of the time.
Topaz found that fares offered by travel agents averaged $170 less
“We’re finding that the combination of the agency’s preferred-
Supplier agreements and the company’s negotiated agreements
usually is sufficient to beat the lowest price on the internet”
Valerie Estep, President Topaz
source: National Business Travelers Association, April 17, 2002
Is Current Travel Policy and Procedures
Sufficient for Compliance, Excessive, or Insufficient?
Should University Continue Having a Preferred Travel Agency Relationship?
Course of Action for Deferred Billing?